Financial Management at Google v. Microsoft

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Financial Management at Google v. Microsoft

Introduction

Both Google and Microsoft are the top companies in the world in the information technology (IT) industry. Both were the pioneers of technology and introduced drastic innovations in the fields of information technology that completely transformed the world of the business, home, as well as that of the information technology. Both companies are based in US and are one of the Fortune 500 companies.

Microsoft Corporation is credited with developing software which literally transformed the world. The first success of Microsoft was the GUI (graphical user interface) operating system, which was called as the Windows. Then, Microsoft invented the Microsoft Office that changed the way the world worked in offices as well as in homes. Today, Microsoft is the pioneer of various technologies ranging from hardware solutions to software solutions provided by its various divisions.

On the other hand, Google is the pioneer in online research. Google transformed the way the world conducted online research. Previous other search engines were also available which included Yahoo and AOL. However, Google introduced the concept of SEO (Search Engine Optimization) and revolutionized the way the world browsed and researched the Internet. Today, Google is the innovator of various other Internet technologies including the word press, Google online books, Google scholar, and various other breakthrough Internet technologies (TechXCIS, 2011).

Financial Management at Google v. Microsoft

Comparing the business models

Core business

The core businesses of the two companies are widely different. There is no direct competition between the two companies. The companies have varied business models. However, it is worth noting that the business models of both the companies are traditional business models, not any of the newer business models. However, both the companies have an unwavering focus on innovation and technology. Still, the two companies appear to be focusing on discovery.

The core business of Google is to provide various web technologies. These web technologies range from providing the world's best search engine to providing other online resources such as access to books and scholarly journals. In addition, Google keeps innovating and aims to provide even more innovative Internet products and services to the whole world. The business model of Google is to generate revenues mostly through online advertising (Google, n.d.).

Contrarily, the core business of Microsoft is to sell software products. Very recently, it has also started selling hardware in the form of total technology solutions for businesses and enterprises. Microsoft sells all kinds of software ranging from Home PC software to software available from its various divisions, including the entertainment and devices division. However, Microsoft does not provide any consultancy services in the broader field of information technology unlike IBM, which may be pure information technology (IT) consultancy and may not include the provision of hardware, software, or both hardware, software and networking (complete) solutions. In this way, Microsoft does not provide advice as well as information technology (IT) infrastructure implementations the way IBM does (Microsoft, 2012).

Leading products and services

Google provides various products and services ...